Business News Round Up (04/11/2025)
Glasgow climbs to seventh in UK’s Investment Attractiveness Index
Glasgow has advanced two places to seventh, while Edinburgh has retained its position as the UK’s second most attractive city for foreign direct investment (FDI), according to the latest in-depth study by Wright, Johnston & Mackenzie (WJM) and Irwin Mitchell. The report, produced in partnership with the Centre for Economics and Business Research (Cebr), compares 48 UK cities in relation to economic growth, skills, and infrastructure*, providing a comprehensive view of where investment opportunities are rising – and where challenges remain. In the latest edition, Edinburgh secures second place with an overall score of 52.0. It says the city demonstrates consistent strength across all three pillars, particularly Local Infrastructure, where it rose 1.6 points to score 64.1. Improvements in online connectivity and infrastructure also underpin Edinburgh’s success, while its skills base remains robust.
Budget will be ‘fair’ says Reeves as tax rises expected
Chancellor Rachel Reeves has said she will make “necessary choices” in the Budget after the “world has thrown more challenges our way”. In an unusual pre-Budget speech in Downing Street, Reeves did not rule out a U-turn on Labour’s general election manifesto pledge not to hike income tax, VAT or National Insurance. When journalists explicitly asked if the government was set to break that pledge she did not answer directly but said she was “setting the context for the Budget”. Shadow chancellor Sir Mel Stride said the “emergency” speech confirmed “the fears of households and businesses – that tax rises are coming.” He added that if Reeves “breaks her promise and hikes taxes again, she must go”. If there was any doubt about tax rises before this speech, there isn’t now. It has been called the 50-year tax taboo.
https://www.bbc.co.uk/news/articles/ce8g6kdgzelo
Birmingham overtakes Greater Manchester in foreign investment attractiveness
Birmingham has overtaken Greater Manchester to break into the top four cities for foreign investment attractiveness, according to the latest barometer published by Irwin Mitchell and the Centre for Economics and Business Research. The report compares 48 UK cities in relation to economic growth, skills, and infrastructure, providing a view of where investment opportunities are rising and where challenges remain. According to the latest edition of the Investment Attractiveness Index, Birmingham has climbed to fourth place, overtaking Greater Manchester. The city leads the UK in ‘growth potential’, driven by its position within the West Midlands Investment Zone and “robust” forecasts for GVA and employment growth. Birmingham’s overall score is “further strengthened by its large economically active population and strong university presence”, ranking fifth nationally for local skills, although its road network “remains a particular challenge” and contributes to its lower ranking for local infrastructure (15th).
Scottish SMEs ‘missing out’ on up to £10,500 National Insurance relief
Scottish SMEs have been warned they could be missing out on up to £10,500 relief on their National Insurance (NI) contributions by failing to claim their full Employment Allowance following a recent change in the rules. Nicola Campbell, head of accountancy and business advisory services with Azets in Glasgow, said that while larger businesses have been able since April to claim the full Employment Allowance, many are not yet taking advantage. “This allowance has become even more valuable since the cap preventing employers with over £100,000 in NI liabilities from claiming was removed in April,” she said. “Scottish firms could be losing out on up to £10,500 by not claiming their entitlement to the Employment Allowance. This relief could help reduce operational costs and is well worth the investment in the time to make the claim.”